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Ulster Bank Interest rates???

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  • 13-02-2011 11:57am
    #1
    Walker34
    Registered Users Posts: 425 ✭✭


    Hi,
    I applied for a small loan (5K) on friday from my bank of 28 years and was quoted a term interest rate of 14.5% pa ovet 2 years. Thats almost as bad as Credit Card rates. I have NEVER defaulted ever, and have no other loans.I own my own house and have good pension.I have a long clean credit history with UB. Is this a common experience or am I an exception.


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    #2
    Bullseye1
    Closed Accounts Posts: 5,731 ✭✭✭Bullseye1


    AIB charging €330 for borrowing €1200 over 10 months. And an administration fee of €65.

    Banks maybe be loaning but they are ripping people off.


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    #3
    Walker34
    Registered Users Posts: 425 ✭✭Walker34


    Just found this on AIB website:

    Lending criteria, terms and conditions apply. Credit facilities are subject to repayment capacity and financial status and are not available to persons under 18 years of age. Security may be required. A typical EUR1500 one year variable interest rate loan will have monthly repayments of EUR134.29 Interest 13.59%, APR 14.29%. If the APR does not vary during the term of the loan the total cost of credit of this loan i.e. total amount repayable less the amount of the loan, would be EUR111.48. (Rates and repayments are correct as at 24/11/2009 based on loan drawdown on 08/06/2010 with first repayment 08/07/2010). AIB Payment Protector for this lending is arranged by AIB Insurance Services Ltd. AIB Insurance Services Ltd. and Allied Irish Banks, p.l.c. are regulated by the Central Bank of Ireland.


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    #4
    Kennie1
    Registered Users Posts: 302 ✭✭Kennie1


    If you are a credit union member check with them as their interest rates are a lot better than that. If you are not, then join them!!!


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    #5
    unclebill98
    Registered Users Posts: 3,816 ✭✭✭unclebill98


    Small loan, small term. Bank has to make money. Atleast there is no arr fee either side of the loan.

    Interest rates get lower for larger amounts and terms. No cheaper than CC unless you've BOI online card and may some other online cards.

    As for the CU. There loan rates can be tiered also.


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    #6
    Walker34
    Registered Users Posts: 425 ✭✭Walker34


    Kennie1 wrote: »
    If you are a credit union member check with them as their interest rates are a lot better than that. If you are not, then join them!!!

    I have never joined the CU unfortunatly.....but now I am all ears. How likely am I to get a small loan in the short term. I have a clean 28 year bank record with no defaults ever.....and own a house in D6w as colateral. If thats not enough security for them.......I give up!


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    #7
    unclebill98
    Registered Users Posts: 3,816 ✭✭✭unclebill98


    There is normally a waiting period with CU for loans.


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    #8
    Rebel1977
    Registered Users Posts: 802 ✭✭✭Rebel1977


    most banks have tiered pricing as far as I know, more you borrow the lower the rate, small loans seem to attract high rates, the personal lending rates are criminal rates in my opinion, penal rates i call them.


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    #9
    okiss
    Registered Users Posts: 698 ✭✭✭okiss


    I am a cu member and have got loans in the past with them. As far I know you need to be saving with them on a regular basis for 3 months and the amount of loan is also dependent of what you have saved. You can set up a dd to pay off the loan each week or month and they may ask to to pay a bit extra each month on top of the loan payments into the savings part of your account.
    You can make a lump sum payment into the savings or loan account at any time. So you can pay your loan off quicker and pay less interest.
    If you know a member of the credit union who has good standing they may be able to help you get a loan quicker.
    I find it is a great service because it gets you into a saving habit and once your borrowings are keep in order you may be able to get a top up.
    I would ring your nearest large credit union as they may be open on a Saturday.


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